Bangladesh Bank to issue prudential guidelines to execute proposed rates cut

FE Report | Published: June 22, 2018 09:35:48 | Updated: June 23, 2018 10:08:52

FE file photo

The central bank has planned to issue prudential guidelines for implementing the proposed cut in the banks' lending and deposit rates.

To discuss the matter, the Bangladesh Bank (BB) will sit sometime next week with members of the Association of Bankers, Bangladesh (ABB).

"The issue will also be discussed in detail at the next bankers' meeting. The meeting is scheduled to be held on July 02," a senior BB official told the FE.

The central bank's move came after the Bangladesh Association of Banks (BAB) has sought help from the BB to implement its proposed lower interest rates within the timeframe.

The appeal was made at a meeting with the Bangladesh Bank (BB) high-ups held at its headquarters in Dhaka Thursday, with BB governor Fazle Kabir in the chair.

A 13-member BAB delegation, led by its chairman Nazrul Islam Mazumder, attended at the meeting, a BB official said.

The BAB leaders conveyed their Wednesday's decisions to the central bank high-ups and sought all sorts of cooperation to implement the proposed rates.

"Of course, we've sought help from the Bangladesh Bank for implementing our decisions," the BAB chief told the FE after the meeting.

On Wednesday, the BAB decided to bring down the interest rates on both lending and deposits at 9.0 per cent and 6.0 per cent respectively from July 01.

"Interest rates on all loans including the previous ones will come down to 9.0 per cent," Mr. Mazumder said while replying to a query.

None will lose their interest following the implementation of the lower interest rates, he argued.

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